Mohawk Industries, Inc. announced today that it has agreed to buy the Marazzi Group for $1.5 billion to make Mohawk the biggest maker of ceramic tile in the world.
The Calhoun, Ga.-based carpet maker said it is buying the Marazzi from two private equity funds -- Permira and Private Equity Partners.
The Marazzi Group is a leading manufacturer and marketer of ceramic tile in all its major geographies, including Russia, the United States, Italy, France and Spain. Marazzi's 2011 revenues were about $1.16 billion.
Mohawk said it expects to complete the transaction during the first quarter of 2013 pending customary closing conditions and regulatory approvals. Mohawk anticipates that the transaction will add to earnings next year.
Ceramic tile remains the world's most widely utilized flooring product with an estimated worldwide consumption of more than 110 billion square feet and annual growth of 5 to 6 percent. Marazzi distributes ceramic tile in more than 100 countries through a strong international sales force, which will increase Mohawk's worldwide growth.
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